No rate rise until Xmas: NAB
1 minute read

No rate rise until Xmas: NAB

No rate rise until Xmas: NAB

by webmaster | July 14, 2011 | 1 minute read

Soft consumer spending could see interest rates stay on hold until as late as Christmas, according to National Australia Bank.

by webmaster
July 14, 2011

NAB’s latest monthly business survey found conditions in retail have fallen to worryingly low levels, while manufacturing, construction and wholesale are also poor.

Alan Oster, NAB group chief economist, said the severe weakness in retail could force the RBA to push its next rate hike back until December.

“We expect the next 25 basis point rise in the cash rate to be deferred until December, when growth momentum becomes more apparent and the labour market tightens significantly,” Mr Oster said.

“The final 25 basis point rate hike is expected to be pushed back until May 2012.”

share the article

Subscribe to get the latest news and updates - join a community of over 80,000 property investors.

Check this box to receive podcast updates

From the web

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.